Accounting regulation, like any other institution, must be legitimate in order to be complied with. A key component for the legitimacy achievement is a legitimate regulation process. Consequently, the legitimacy of the accounting regulation process has real economic consequences for society as a whole. By building on a framework of prerequisites for a legitimate standard-setting process, the study develops a theoretical model for the analysis of an accounting regulation process’ legitimacy. The empirical setting of the study is distinct from the empirical setting of the literature included in the literature review, as it captures the regulation process of the new municipal accounting act in Sweden. By analyzing all the official documents corresponding to the regulation process of the new municipal accounting act, the study analyses the legitimacy achievement of the accounting regulation process. The results of the study showcase a heavily politically influenced regulation process, where there were deficiencies with the legitimacy achievement. Based on the results of the study, avenues for further research are suggested.

<p>Background: Many different parties in the society are affected by the financial information delivered by the companies. Therefore, different interests want their ideas to have an impact on the accountning standards. The construction of the accounting standards are illustrated as a pure political process, where lobbying and conflicts of interest are determining factors. </p><p>Purpose: The purpose is to understand the underlying interests behind regulation of financial accounting in Sweden and how these interests are manifestated in the establishment of accounting standards. </p><p>Method: The thesis is designed as a casestudy of the regulation process which induced the legislation of the Årsredovisningslagen 6 kap 1 § 3st. The case process has been analysed through interviews and document studies from the arise of the intention of regulation of different interest parties, until the accounting law was established. </p><p>Results: Lobbying and interest of conflicts exists in accounting regulation processes. Depending on the subject of reglulation, different parties feel their interests beeing challenged. The intensity in the conflict of interest and the incentive to lobby depends on the “matter” of the regulation. The process are governed in the constitution of the private individuals of the deciding regulation body.</p>

Background: Many different parties in the society are affected by the financial information delivered by the companies. Therefore, different interests want their ideas to have an impact on the accountning standards. The construction of the accounting standards are illustrated as a pure political process, where lobbying and conflicts of interest are determining factors. Purpose: The purpose is to understand the underlying interests behind regulation of financial accounting in Sweden and how these interests are manifestated in the establishment of accounting standards. Method: The thesis is designed as a casestudy of the regulation process which induced the legislation of the Årsredovisningslagen 6 kap 1 § 3st. The case process has been analysed through interviews and document studies from the arise of the intention of regulation of different interest parties, until the accounting law was established. Results: Lobbying and interest of conflicts exists in accounting regulation processes. Depending on the subject of reglulation, different parties feel their interests beeing challenged. The intensity in the conflict of interest and the incentive to lobby depends on the “matter” of the regulation. The process are governed in the constitution of the private individuals of the deciding regulation body.